The pathogenesis of chronic hepatitis B (CHB) is mainly chronicity of hepatitis B virus infection caused by specific immune impairment. Modern studies have shown that activated specific inflammatory cells and the cytokines released by these cells such as interferon-γ (IFN-γ) and interleukin-4 (IL-4) play important roles in virus clearance and improvement of autoimmune function. With the constant development of traditional Chinese medicine, it has a widespread effect on the immune regulation system (especially IFN-γ and IL-4). This article reviews the research advances in immunologic mechanism if CHB in Chinese and Western medicine in recent years and provides new ideas and measures for traditional Chinese medicine to break the immune tolerance of CHB in terms of immune regulation.